This study aims to validate the measurement instrument for assessing digital payment adoption among Micro, Small, and Medium Enterprises (MSMEs) in Kedah and Perlis, Malaysia. The study integrates the Technology Acceptance Model (TAM) and the Information Systems Success Model (ISSM), with perceived security incorporated into the proposed framework. The measurement model consists of perceived usefulness, perceived ease of use, information quality, system quality, service quality, perceived security, and digital payment adoption. A quantitative research approach was employed using a structured questionnaire. Data were collected from 30 MSME respondents in Kedah and Perlis through purposive sampling and analysed using the Statistical Package for the Social Sciences (SPSS) and Partial Least Squares Structural Equation Modelling (PLS-SEM). Cronbach's alpha was used to assess internal consistency, while convergent validity was evaluated based on factor loadings, composite reliability, and average variance extracted (AVE). The results indicate that the measurement constructs demonstrated satisfactory to excellent internal consistency, with Cronbach's alpha values of 0.938 for digital payment adoption, 0.840 for perceived usefulness, 0.874 for perceived ease of use, 0.884 for information quality, 0.856 for system quality, 0.846 for service quality, and 0.874 for perceived security. The findings further indicate that most constructs achieved acceptable convergent validity based on composite reliability and AVE. Overall, the pilot study confirms that the measurement instrument demonstrates satisfactory reliability and validity for further empirical investigation. The study contributes methodologically by providing a validated measurement instrument for examining digital payment adoption among MSMEs, particularly within the context of Kedah and Perlis.
Ahmad Ramli, F. A. (2021). Mobile payment and e-wallet adoption in emerging economies: A systematic literature review. Journal of Emerging Economies and Islamic Research, 9(2), 1–39. https://doi.org/10.24191/jeeir.v9i2.13617
Albastaki, T., Hamdan, A., Albastaki, Y. A., & Bakir, A. (2022). Factors affecting e-payment acceptance by customers: an empirical study in the Kingdom of Bahrain. Competitiveness Review an International Business Journal Incorporating Journal of Global Competitiveness, 34(1), 107–124. https://doi.org/10.1108/cr-09-2022-0133
Al-Shamali, S., Al-Shamali, A., Alsaber, A., Haffar, M., Alkandari, A., Alkashti, F., & Aljuwaisri, A. M. (2025). Understanding Mobile Payment Platform Adoption. International Journal of Customer Relationship Marketing and Management, 16(1), 1–24. https://doi.org/10.4018/ijcrmm.381088
Antoni, A., Judijanto, L., & Supriadi, A. (2024). Impact of Fintech Adoption, MSME Digital Readiness, and Regulatory Environment on Financial Performance in Indonesia. West Science Accounting and Finance, 2(02), 275–286. https://doi.org/10.58812/wsaf.v2i02.1046
Aslam, W., Siddiqui, D. A., Arif, I., & Farhat, K. (2022). Chatbots in the frontline: drivers of acceptance. Kybernetes, 52(9), 3781–3810. https://doi.org/10.1108/k-11-2021-1119
Ghosh, G. (2021). Adoption of digital payment system by consumers: A review of literature. International Journal of Creative Research Thoughts, 9(2), 2320–2882.
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2024). A primer on partial least squares structural equation modeling (PLS-SEM) (4th ed.). SAGE Publications. https://doi.org/10.4135/9781071874493
Hanafiah?, M. H., Asyraff, M. A., Ismail, M. N. I., & Sjukriana, J. (2024). Understanding the key drivers in using mobile payment (M-Payment) among Generation Z travellers. Young Consumers Insight and Ideas for Responsible Marketers, 25(5), 645–664. https://doi.org/10.1108/yc-08-2023-1835
Handoko, B. L., Indrawati, D. S., & Zulkarnaen, S. R. P. (2024). Embracing AI in Auditing: An Examination of Auditor Readiness Through the TRAM Framework. International Journal of Computational Methods and Experimental Measurements, 12(1), 53–60. https://doi.org/10.18280/ijcmem.120106
Kanapathipillai, K., Ling, T. G. S., Loong, L. M., Rabong, B. A., & Subindin, I. B. (2024). Navigating the digital payment landscape in Malaysian SMEs: Post-COVID-19 challenges and key drivers of adoption. European Journal of Social Sciences Studies, 10(3). https://doi.org/10.46827/ejsss.v10i3.1784
Kaur, H., Mehta, K., & Mago, M. (2025). Understanding Factors Influencing CBDC Usage Intentions Among Indian Households: Applying an Extended UTAUT Model. Nmims Management Review, 33(2), 87–102. https://doi.org/10.1177/09711023251339858
Kline, R. B. (2024). Principles and practice of structural equation modeling (5th ed.). Guilford Press.
Lestari, S. R., Adawiyah, W. R., Alhamidi, A. L., Prayogi, J., & Haryanto, R. (2024). Navigating perilous seas: unmasking online banking frauds, perceived usefulness, fear of cybercrime and distrust in online banking. Safer Communities, 23(4), 444–464. https://doi.org/10.1108/sc-04-2024-0018
Lim, H., Zadeh, A. V., Hanifah, H., & Nikbin, D. (2024). Evaluating the benefits and risks of facial recognition payment systems adoption in Malaysia. The International Journal of Bank Marketing, 43(2), 292–320. https://doi.org/10.1108/ijbm-05-2024-0300
Lim, W. M. (2025). What Is Qualitative Research? An Overview and Guidelines. Australasian Marketing Journal, 33(2), 199-229. https://doi.org/10.1177/14413582241264619
Linge, A. A., Chaudhari, T., Kakde, B. B., & Singh, M. (2023). Analysis of Factors Affecting Use Behavior towards Mobile Payment Apps: A SEM Approach. Human Behavior and Emerging Technologies, 2023, 1–13. https://doi.org/10.1155/2023/3327994
Ming, K. L. Y., & Jais, M. (2022). Factors Affecting the Intention to Use E-Wallets during the COVID-19 Pandemic. Gadjah Mada International Journal of Business, 24(1), 82. https://doi.org/10.22146/gamaijb.64708
Mohamad, A., Mazinun, M. M. M. M., & Idris, S. (2022). The Influencing Factors on the Acceptance of Digital Payment Among Universiti Malaysia Kelantan Students. Journal of Entrepreneurship and Business, 10(1), 130–171. https://doi.org/10.17687/jeb.v10i1.865
Musyaffi, A. M., Gurendrawati, E., Afriadi, B., Oli, M. C., Widawati, Y., & Oktavia, R. (2022). Resistance of Traditional SMEs in Using Digital Payments: Development of Innovation Resistance Theory. Human Behavior and Emerging Technologies, 2022, 1–10. https://doi.org/10.1155/2022/7538042
Nguyen, M. T. B., Khuc, N. D., & Nguyen, N. H. (2023). The direct and indirect impacts of factors on the use of QR code payment during the Covid-19 pandemic: Empirical research in Ho Chi Minh City, Vietnam. Ho Chi Minh City Open University Journal of Science - Economics and Business Administration, 14(2), 126–142. https://doi.org/10.46223/hcmcoujs.econ.en.14.2.2438.2024
Norbu, T., Park, J. Y., Wong, K. W., & Cui, H. (2024). Factors Affecting Trust and Acceptance for Blockchain Adoption in Digital Payment Systems: A Systematic Review. Future Internet, 16(3), 106. https://doi.org/10.3390/fi16030106
Nurherwening, A., Dari, A. W., Urumsah, D., & Wibowo, H. T. (2021). The success of go-pay financial technology service adoption. Journal of Contemporary Accounting, 3(2), 98–111. https://doi.org/10.20885/jca.vol3.iss2.art5
Patnaik, A., Kudal, P., Dawar, S., Inamdar, V., & Dawar, P. (2023). Exploring User Acceptance of Digital Payments in India: An Empirical Study Using an Extended Technology Acceptance Model in the Fintech Landscape. International Journal of Sustainable Development and Planning, 18(8), 2587–2597. https://doi.org/10.18280/ijsdp.180831
Poudel, H. K., Ranabhat, D., Sapkota, P., & Ranabhat, M. (2023). Adoption of Digital Payment System among the Youths in Pokhara Metropolitan City. Interdisciplinary Journal of Innovation in Nepalese Academia, 2(2), 160–172. https://doi.org/10.3126/idjina.v2i2.59495
Pulatama, Ikmal & Ariadi, Gede. (2025). The Effect of Human Capital on Job Performance Mediated by Innovation Capability and Potential Absorptive Capacity. Jurnal Manajemen Motivasi. 22. 303-312. 10.29406/jmm.v22i1.8439.
Pushparaj, N., Natarajan, M., & Sivakumar, V. (2025). Exploring the Prominence of Quality Dimensions on M-Payments Apps Customer Experience and Stickiness. Sage Open, 15(3). https://doi.org/10.1177/21582440251361988
Qatawneh, N., Al-Okaily, A., Al?Okaily, M., & Rehman, S. U. (2024). Exploring the antecedent factors of continuous intention to use mobile money: insights from emerging markets. Digital Policy Regulation and Governance, 27(2), 175–200. https://doi.org/10.1108/dprg-04-2024-0080
Samat, M. F., & Bashri, Z. A. A. (2024). Determinants affecting the acceptance of cashless payment among SMEs in Malaysia: Proposal of a conceptual framework. Information Management and Business Review, 16(3(I)), 653–660. https://doi.org/10.22610/imbr.v16i3(I).4018
Shanmugavel, N., Rana, N. P., Parayitam, S., & Kumar, K. S. K. (2024). Assessing Continuance Intention to Use Digital Wallet. Journal of Global Information Management, 32(1), 1–29. https://doi.org/10.4018/jgim.361120
Sharma, P., & Sharma, S. (2023). Mapping the Intellectual Structure of Mobile Payment Research: A Bibliometric Analysis. Sage Open, 13(3). https://doi.org/10.1177/21582440231200329
Siregar, Torang. (2025). Descriptive Statistics: Concepts, Data Collection Methods, and Sampling Techniques in Quantitative Research. Jurnal Aplikasi Matematika dan Statistik.
Srivastava, S., Mohta, A., & Shunmugasundaram, V. (2023). Adoption of digital payment FinTech service by Gen Y and Gen Z users: evidence from India. Digital Policy Regulation and Governance, 26(1), 95–117. https://doi.org/10.1108/dprg-07-2023-0110
Susiloadi, P., Renanita, T., & Julaibib, J. (2023). Predicting M-Payment Adoption Intention in Indonesia: Integrating Technology Acceptance Model and Psychological Factors. Indigenous Jurnal Ilmiah Psikologi, 8(3), 352–367. https://doi.org/10.23917/indigenous.v8i3.2586
Tabachnick, B. G., & Fidell, L. S. (2021). Using multivariate statistics (7th ed.). Pearson. Ulas, Dilber. (2019). Digital Transformation Process and SMEs. Procedia Computer Science. 158. 662-671. https://doi.org/10.1016/j.procs.2019.09.101.
Tatl?, H. S., B?y?kbeyi, T., ÇEL?K, G. G., & Öngel, G. (2024). Paperless Technologies in Universities: Examination in Terms of Unified Theory of Acceptance and Use of Technology (UTAUT). Sustainability, 16(7), 2692. https://doi.org/10.3390/su16072692
Tun, P. M. (2021). Prerequisites and Perceived Information System Qualities Model for Mobile Banking Adoption Among the Customers of Private Commercial Banks in Myanmar. Jas (Journal of Asean Studies), 9(1). https://doi.org/10.21512/jas.v9i1.6899
Urumsah, D., Respati, A., Cahyawati, E., & Setiyono, P. (2023). FACTORS INFLUENCING THE ADOPTION OF FINANCIAL TECHNOLOGY AND NET BENEFIT IN INDONESIAN BANKING. https://doi.org/10.33965/mccsis2023_202304l009
Abdullah, N. A. H., & Rosbi, S. (2026). Assessing Digital Payment System Adoption among MSMEs in Kedah and Perlis: Preliminary Findings from a Pilot Study. International Journal of Academic Research in Business and Social Sciences, 16(9), 747–763.
Copyright: © 2026 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
